Proposal after time off from work
October 2nd, 2007 by Questions
I left my job last year and took a year off to go back to school. I used my credit cards to pay my living expenses/tuition costs. My debt increased from about $40,000 to about $55,000 over this period. I had expected to receive a lump-sum amount from my parents who have just sold their house. I expected to receive this amount (about $25k) when I chose to take time off work last year. I just found out yesterday that they won`t be able to give me any money.
Since my debt increased because I left work of my own free will, do you think my creditors will consider this fraud? I would like to make a consumer proposal for at least 50% of my debt.
What happens if they do consider it fraud? (I owed one creditor nothing last year, and now owe them $9000.) Are they likely to consider the $4500 they would receive under the proposal as satisfactory given these circumstances? If not, are they likely to charge me with fraud?